Asked by Karan Kahlon on Jun 30, 2024
Verified
A conglomerate merger occurs when two firms with either a horizontal or a vertical business relationship combine.
Conglomerate Merger
Occurs when unrelated enterprises combine, such as Mobil Oil and Montgomery Ward.
Horizontal
Term often used in analysis to indicate a flat or level condition, such as a horizontal merger, which occurs between companies in the same industry.
Vertical Business Relationship
A business model where a company is involved in multiple stages of the production process, from raw material to final product, often through acquisitions or partnerships.
- Classify different forms of mergers and comprehend the strategic justifications for their implementation.
Verified Answer
ZK
Zybrea KnightJul 04, 2024
Final Answer :
False
Explanation :
A conglomerate merger occurs when two firms with unrelated business activities combine, while a horizontal or vertical merger involves firms with related business activities.
Learning Objectives
- Classify different forms of mergers and comprehend the strategic justifications for their implementation.